There are many contingencies in our daily lives which may unexpectantly occur and which may well spell ruin or financial emabrrassment to us.
Such things as fire, theft, death, accident and the destruction of property are just some of the catastrophes which may strike unexpectedly and, apart from losses which are immeasurable in terms of personal grief, cause financial hardship.
Insurance is an effective, accessable and practical manner of mitigating against the worst financial effects of such losses, and allows the individual a siginficant degree of certainity and predictibility in making plans about his activities and ventures.
Clearly, in the event of an insured catastrophy actually occuring, the financial burden of repairing the damage is largely lifted from the individual.